With an increasing population now familiar with ‘tap and pay’, the value of money and ability to make tempered financial decisions can sometimes become lost.

A study* conducted in 2008 found that individuals spent more when using credit cards as opposed to cash. Why? One important reason was the perception of the individual in relation to the money changing hands. For example, a cash-based payment is tangible – the piece of paper that you hold in your hand has value attached to it. When you spend that piece of paper, you are aware of it leaving your possession (have you ever played Monopoly with real cash?).

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Thinking about a gearing strategy for your SMSF? It’s possible to borrow from a related party, but you must structure the loan terms correctly or else face significant tax penalties. Practically, this means there’s a limit on the loan-to-value ratio (LVR) you can set up, plus other requirements for the interest rate and other key terms.

When planning a borrowing in your SMSF to buy an asset such as property or shares (known as a “limited recourse borrowing arrangement” or LRBA), you have a choice of borrowing from a commercial lender or a private party. This could even be a related party of the SMSF, such as the SMSF members or the members’ family trust.

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If you haven’t had your business’s value assessed recently, it’s definitely worth your while. Here’s a look at the benefits of undertaking a business valuation.

Having your business assessed is more than just a box-ticking exercise. The information you glean from it can be vital to your future strategy. Here are some areas where a business valuation can provide clarity.

It’s easy to lose track of certain assets, but this could be costing you. For example, you might have depreciated assets that can be replaced – the Federal Government recently extended the instant asset tax write-off scheme for small and medium enterprises (SMEs).

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When it comes to your retirement years, it’s important to understand the distinction between ‘life expectancy’ and ‘healthy life expectancy’. According to the Australian Institute of Health and Welfare. 1. In terms of life expectancy for Australians aged 65, on average: A) males can expect to live 19.6 years more, B) females can expect to live 22.3 years more. 2. In terms of healthy life expectancy for Australians aged 65, on average: A) males can expect to live 9.2 years without disability and another 10.4 years with some form of disability, including 3.4 years with severe or profound core activity limitation, B) females can expect to live 10.0 years without disability and another 12.3 years with some form of disability, including 5.6 years with severe or profound core activity limitation.

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Taking an extended job posting overseas? If you currently have an SMSF, you’ll need a strategy for managing your super to ensure your fund doesn’t breach any residency rules. Know your options and plan before you go. When SMSF trustees travel overseas for an extended period, there’s a risk their fund’s “central management and control” (CMC) will be considered to move outside Australia. This causes the SMSF to become non-resident, resulting in very hefty penalty taxes. It’s essential to plan for this before departing overseas.

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Being a smart taxpayer means knowing what resources are available to you and understanding how the ATO deals with individuals as tax problems arise. Here are three simple things all individuals can do to help keep their tax affairs as stress-free as possible this tax time. Sometimes, the way we approach tax matters can end up making a big difference to our bottom line and stress levels. Here are three tips to help individual taxpayers achieve a better outcome when lodging and dealing with the ATO.

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This year, as every year (around August), we will provide you information on reviewing (and engaging with) your annual superannuation statement. The changes that we refer to above are encapsulated in the recently legislated Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018. Whilst an overview of this Bill was provided in our article, ‘Legislative update (Acts): To be, or not to be… (Part 2)’, we go into further detail below.

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The FHLDS aims to help first home buyers purchase a home faster. Estimates suggest that it will reduce the time taken for first home buyers to save for a home deposit, by at least half. For context, the national averages for the time it takes an average-income couple to save a 20% home deposit, is 4.6 years for a median-priced house; or 4.2 years for a median-priced apartment. If legislated, the FHLDS will help eligible first home buyers purchase a home with a deposit as low as 5%, by guaranteeing any shortfall in the 20% deposit that most lending institutions require for a home loan.

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Central banks have generally moved to an easing stance on the back of growing concerns with weaker economic growth. It remains to be seen if sufficient fiscal policy support will also be implemented. 

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